A SHILLING A WEEK.

Auckland Star, Volume LX, Issue 243, 14 October 1929, Page 4

A SHILLING A WEEK.

BRINGS REMARKABLE

RESULTS.

NORTHERN BUILDING SOCIETY,

ADVANCES HALF A MILLION

That results almost astounding are possible through the receipt and careful disposition of small sums of money is strikingly shown in the sixth annual report of the Northern Building Society which has just been issued. Within the short period named the society has lent out on mortgage over half a million sterling, and it speaks well for the general position of the working men and women who form the bulk of its clientele that up to date it has not been found necessary to write off a single penny as a bad debt, nor is such a happening visible on the horizon at the present time. The company's record during its brief existence reads as follows: — Total ReIncome. Mortgages, serves. £ £ £ 1924 .... 39,476 35,014 6,608 1925 .... 55,143 58,464 12,257 1926 .... 72,532 87,443 16,03S 1927 85.092 101,695 20,216 1928 .... 108,790 113,544 20,815 1929 .... 121,406 117,253 20,224 The society claims to have run its business on thoroughly economical lines, and points proudly to the fact that, taking the total of its receipts and the total of its expenditure, there is a small surplus for the reserves from the 1/9 a share paid in by members. An important feature stressed by the management is that the various groups are being kept up to an effective strength. There are seventeen groups in operation, and the report details clearly the profits earned and the present position of each. The directors' report to be presented to shareholders on October 31 states, inter alia: — The demand for shares has been steadily maintained, but new members have wisely preferred to join' existing groups, replacing withdrawing members, and so no new groups were opened during the year. Keeping groups up to effective strength is a vital factor in the welfare of the society, and has an important bearing on the terminating of the groups within a reasonable time. Your board are. pleased to report that all groups are in a very healthy condition. The income for the year amounted to £121,406, showing a substantial increase of £12,616 over last year s figures— a further proof of the continued growth of the society. The advances made and authorised during the year were £94,655. At the close of this, the sixth year of the society's operations, the total mortgages have exceeded the half-million, having reached the remarkable total of £513,713, a great achievement in so short sl period, and an outstanding example of successful and progressive development. Groups 4 to 8 (inclusive) became five years old during the year. Withdrawals in these groups are being paid out in accoi dance with the provisions of the Rules. Next year, groups 9 to 12 (inclusive) become five years old. During the year your board put into operation a system enabling members to obtain temporary advances on their shares. This has proved very popular, and has been the means of providing real assistance to many shareholders. The net profits earned during the year were £20,22-< 13/10. To this must be added the profits up to last year, £75,963 6/3, making a total of £96,188 0/1 and constituting a substantial reserve. In order to make the reversionary character of the profits clear, the profit fund has been divided so as to show realised profits separately from profits secured by mortgages but as yet unrealised. Two directors, Messrs. A. G. Lunn and J. W. Hardley, retire, and offer themselves for re-election. Auditors. —The directors have • reappointed Messrs. Thomson and Rodger as auditors on behalf of the directors. Messrs. Carlaw, Esam and Spry as auditors on behalf of the shareholders, again offer their services for re-appointment by the members. During the year the society, was unfortunate in losing its secretary, Mr. David Pollok, who left for Australia to take up an important insurance appointment. Mr. Pollok's work in the formation, establishment and successful conduct o£ the society are well known to shareholders, and members will join with the directors in wishing him every success in his new sphere. _ Mr. A. E. Knowles, who has been associated with the society since its inception, was appointed secretary. Your directors have every confidence in the continued expansion and prosperity of the society. The rapid growth of the society in the snort period of five years is little short of phenomenal, and indicates the popularity of this mutual self-help. institution which is truly co-operative, and is conducted for the benefit and advantage of all within its ranks.